Listed A Brown Company Inc. may join the growing liquefied natural gas bandwagon with the planned acquisition of nearly 100 percent of Vires Energy Corp. owned by Argo Group Pte. Ltd.
Vires Energy is the proponent of an integrated floating LNG storage and re-gasification terminal and a 506-megawatt floating natural gas-fired power plant in Barangay Simlong, Batangas City.
Vires Energy has registered the project with the Board of Investment to avail of fiscal incentives.
“The MOA (memorandum of agreement) entered into is a preliminary agreement and the prospective acquisition will be concluded after the completion of the customary due diligence period of a maximum period of 180 days,” A Brown said.
A Brown serves as the holding company of the Brown Group of Companies. It is primarily engaged in the business of real estate development in Cagayan de Oro City and Initao in Misamis Oriental; Cainta, Rizal; Valencia City, Bukidnon; and Butuan City, Agusan del Norte.
A Brown through its subsidiaries also ventured into oil palm nursery and seedlings distribution, palm oil milling, operation of hotels, real estate brokerage, power generation and investment in gold mining assets.
In 2014, a new unit, Peakpower Bukidnon Inc., was incorporated to take car of a 15-year build-operate-maintain and transfer agreement with the Bukidnon II Electric Cooperative Inc. (Buseco). PBI and Buseco signed a power purchase and transfer agreement on a 10.40-MW diesel/bunker-fired power plant to be constructed in Manolo Fortich, Bukidnon.
The company sold its 100-percent interest in PBI to Peakpower Energy Inc. in 2016 to consolidate its investment in peaking project under one holding company.
A Brown’s subsidiaries include Brown Resources Corp., Palm Thermal Consolidated Holdings Corp., Hydro Link Projects Corp. and PBI. Its affiliates are Masinloc Consolidated Power Inc., Peakpower Energy, and PhiGold Ltd.
Vires Energy earlier informed the Energy Department of its plan to put up an LNG facility. The company obtained approval to conduct a grid impact study on the proposed LNG power project.